The U.S. Marshals Service, a division of the U.S. Department of Justice, has recently granted Coinbase Prime a substantial contract for the oversight and disposal of its high-cap cryptocurrency holdings. This decision comes after a competitive bidding process initiated earlier this year and aims to improve the management of digital assets within federal operations.

Issued on behalf of the Asset Forfeiture Division (AFD), the contract focuses on the efficient management and disposal of significant quantities of popular cryptocurrencies categorized as 'Class 1' digital assets. In adherence to Department of Justice and USMS policies, Coinbase Prime will implement storage and liquidation strategies under this agreement.

The key objective of the contract is to simplify the custody, administration, and disposal procedures for cryptocurrencies, broadening the spectrum of digital assets supervised within the government's forfeiture programs. Structured as a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) agreement, the contract spans an initial ordering term of five years, with the potential for a six-month extension.

The USMS stresses the importance of handling these digital assets in a professional, lawful, and policy-compliant manner. The selection process prioritized identifying a partner capable of providing the 'best value' to the government through a trade-off evaluation method.

As of March 31, Coinbase's services safeguarded assets totaling $330 billion and saw institutional trading volume amounting to $256 billion in the first quarter of 2024. This contract signifies a significant advancement in incorporating cryptocurrency management into federal law enforcement activities, signaling the increasing recognition of digital assets in governmental processes and the necessity for specialized services to manage them securely and effectively.

The alliance between the USMS and Coinbase further solidifies the platform's existing partnerships with law enforcement agencies, which have been established since 2014. Coinbase currently collaborates with prominent U.S. federal, state, and local law enforcement entities, as well as international organizations on every continent, reinforcing its role as a trusted partner in digital asset management.